As in other industries, the explosion of generative AI has forced the financial services sector to quickly adapt while riding a wave of regulatory and ethical questions. How will banks, insurers and other financial firms balance the risks and rewards of GenAI and other transformative tech in the year ahead? Experts and execs from SAS anticipate a year of great promise – and potential peril – as generative AI and other technologies reshape financial services. Continue reading…

Ground-breaking new EU rules come into effect today introducing a minimum rate of effective taxation of 15% for multinational companies active in EU Member States. The framework will bring greater fairness and stability to the tax landscape in the EU and globally, while making it more modern and better adapted to today’s globalised, digital world. The entry into force of the minimum effective taxation rules, unanimously agreed by Member States in 2022, formalises the EU’s implementation of the so-called ‘Pillar 2′ rules agreed as part of the global deal on international tax reform in 2021.
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The Financial Stability Board (FSB) has published the Global Monitoring Report on Non-Bank Financial Intermediation 2023. The report presents the FSB’s annual monitoring exercise assessing global trends and vulnerabilities in non-bank financial intermediation (NBFI). The report mainly covers developments in 2022, when most economies experienced a rising interest rate environment in response to inflationary pressures. It describes broad trends in financial intermediation across 29 jurisdictions that account for around 85% of global GDP, before narrowing its focus to the subset of NBFI activities that may be more likely to give rise to vulnerabilities. This year’s exercise includes data enhancements on interconnectedness, sources of funding, and vulnerability metrics. Continue reading…

by Eddie Yue

It is a great pleasure to celebrate the 25th anniversary of the ICCHK with the very distinguished audience here today, and the HKMA is very pleased to support today’s (30 November 2023) event. At last year’s ICCHK event, I shared our thoughts on how connecting digital islands can contribute to a more digitally integrated trade finance system, thereby addressing the pain points in trade finance and improving SMEs’ access to financing. Today, I would like to share our thoughts on a more holistic approach to digitising trade and finance in Hong Kong and how we can reaffirm our global leadership through accelerated digitalisation. Continue reading…

by Rasha Abdel Jalil

Generative artificial intelligence (AI) is reshaping our world, moving beyond its initial harmless applications to power more sinister activities. Its ability to create convincing fake content is enabling criminals to exploit personal information obtained from the vast numbers of internet-connected people for illicit purposes. In response, businesses bolster defences and often rely on Know Your Customer (KYC) as an essential step in fraud prevention. While advances like biometrics and facial recognition have undoubtedly improved identity verification, KYC isn’t foolproof. Criminals are good at finding these weaknesses and slipping past checks. Continue reading…

by Ahsan Habib

Let’s start with talking about greed which is the ethical root cause of corruption. At the root of corruption it has always been the culture of greed which enables accumulating wealth at any cost and without limits. When greed has power, we name it corruption. Corruption is a primary incubator for the global surge in organised crime. And it has a long history. Al Capone who was once one of the most wanted men for the U.S. Treasury, allegedly paid 20 cents of every tainted dollar he earned to ‘pay off’ government officials and greedy politicians. Since then greedy people never had to ‘look back’ and to stop their ‘winning journey’. 
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The Basel Committee on Banking Supervision met virtually  to discuss a range of policy and supervisory initiatives. The Committee took stock of its review of various elements of the prudential standard for banks’ exposures to cryptoassets published in December 2022. It agreed to consult on potential targeted revisions related to the criteria for stablecoins to receive a preferential “Group 1b” regulatory treatment. The Committee will also consult on various technical amendments to help promote a consistent understanding of the standard. The Committee concluded that cryptoassets that use permissionless blockchains create risks that cannot be sufficiently mitigated at present and therefore agreed to retain the existing treatment for such cryptoassets. The consultation paper will be published this month. Continue reading…

by Curtis Simpson

Much like Shakespeare’s final play, which begins with the spectacle of a storm-tossed ship at sea, UK organisations have also found themselves engulfed in a tumultuous cybersecurity tempest. At the eye of the storm is a paradox that highlights the challenges of the digital age. As organisations embrace technological advancements, they inadvertently open themselves up to an ever-growing array of cyber threats. With each new asset or system introduced, the attack surface expands. Coupled with the fact that the cyber landscape is always changing, becoming more sophisticated by the minute, organisations are struggling to keep up. Continue reading…

by Michel Klompmaker

On 7 November 2023, the Serious Whistleblowing Annual Conference took take place at the Hague University of Applied Sciences in the Hague, Netherlands, which was organised together with one of the best-known lawyers in the field, Caroline Raat. The EU Whistleblower Directive has been implemented in the Whistleblowers Protection Act. Employers have set up their internal procedures or are busy doing so. What is of great importance for the professionals in the field is the following: (I) receiving notifications securely, (ii) protecting the reporter, (iii) investigations into reported abuses, (iv) handling and measures, and (v) legal proceedings. This is part two in a series of three articles on the event.  Continue reading…

Two experts at payments advisory firm, RedCompass Labs, recently made some comments on payments and financial crime that might work for any 2023 review/2024 predictions articles that you may be working on. Read on to view a summary with the inclusion of the full commentary.
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